Oil prices fell for a second session on Tuesday 27 October 2026 as traders weighed diplomatic efforts over Iran against ongoing physical supply risks. West Texas Intermediate for December delivery fell $1.86, or 1.83%, to settle at $99.90 a barrel after an intraday high of $102.82, while ICE Brent for December fell $1.93, or 1.7%, to settle at $113.88.

The fall followed Monday's retreat and left Brent below $114 and WTI just under $100. US gasoline and diesel futures also fell by nearly 3% on the day: NYMEX ULSD for November eased 2.79% to $4.7752 a gallon and RBOB for November fell 2.51% to $3.1376 a gallon.

Supply still constrained

The diplomatic easing has not removed supply pressure. Ship-tracking data cited in commodity reporting put Persian Gulf crude exports at about 65% of pre-conflict levels, down from 90% at the start of October. A firmer US dollar added further pressure on dollar-denominated commodities, with the Dollar Index up 0.365 points to 102.165 by mid-afternoon in New York.

What traders are watching

The market is now caught between two forces: hopes that diplomacy reduces the risk of a wider supply disruption, and evidence that physical exports remain well below normal. Until Gulf export volumes recover or diplomacy produces a durable outcome, prices are likely to stay volatile around the $100 level for WTI and $114 for Brent.